Five things that could take Tesla stock higher

An employee drives a Tesla Motors Model S electric automobile, equipped with Autopilot hardware and software, hands-free on a highway in Amsterdam, Netherlands.

Now that Tesla's fleet will be produced with the hardware necessary for full autonomy, one Tesla bull says the company is poised to achieve more milestones that could drive its shares higher.

"In our opinion, TSLA has the leading autopilot system on the road," wrote Baird analyst Ben Kallo, in a research note published Thursday. "We believe TSLA has the most autopilot miles, the most data, and improved hardware necessary to maintain its status as the best autopilot system."

Kallo reiterated an "outperform" rating on Tesla in an investor's note, and has a $338 price target on the stock. The company's stock was recently trading down $3.38, or 1.7 percent, at $200.18.

First, Kallo said he expects demand for the Model S to remain strong through the end of 2016 in the U.S. and Europe.

Then, over the next 18 months, Tesla could reach "several significant milestones" that could be catalysts for the stock. The first two would be the ramp up of Model X production and the unveiling of additional details about the Model III. (In fact, Tesla CEO Elon Musk teased a 'part three' on Twitter Thursday morning.)

Additionally, investors may be eyeing the "expansion of production capacity for both Tesla auto and Tesla Energy" and upcoming construction milestones at the Gigafactory in Nevada, where Tesla makes its batteries and lithium-ion cells technology. Kallo said the Gigafactory "creates a significant barrier for competition."

To be fair, Kallo said he considers Tesla a "Higher Risk" stock and identified a number of factors that could limit the stock's gains, including disruptions to Tesla's supply chain, slackening consumer demand for electric cars, a failure to bring down the cost of batteries, or a changing economic environment that might affect car sales overall.